In a document collection with the payment term "documents against acceptance," when must the buyer pay?

The term "documents against acceptance" refers to a payment method commonly used in international trade where the buyer must accept the shipping documents to take possession of the goods. This acceptance indicates that the buyer commits to pay for the goods at a later date, as specified in the payment terms agreed upon in the transaction.

When a buyer accepts the documents, they are effectively agreeing to pay within a specified time frame. This is typically outlined in the sales contract and can range from a few days to several months, depending on the agreement between the buyer and seller. Therefore, the requirement for payment arises after the buyer has accepted the documents, not immediately, and the timing is dictated by the terms mutually agreed upon in the sale.

For this reason, the correct understanding of "documents against acceptance" centers around the condition that the buyer pays after accepting the documents and within the time stipulated in the contract, which makes option B the accurate choice. The other options do not correctly reflect the nature of this payment term in international trade.